Thursday, March 3, 2011

Daily KLCI: The Breakout Above The Down-Trend-Line (DTL) Could Signal More Upside Amid Improving Technical Readings.

KLCI revisits the 1525 levels amid a positive breakout above Down-Trend-Line(DTL).

Yesterday, KLCI ends +7.6 points amid positive US economic data.In line with better regional markets following talks of Libya’s peace plan and positive Beige book and ADP reports, the FBM KLCI gained 7.6 points to 1506.9, driven by gains in MAYBANK (+8 sen to RM8.76), MISC (+16 sen to RM7.76), SIME (+5 sen to RM9.08) and PBBANK (+6 sen to RM13.10). The market fluctuated within 1512.8 (+13.5 points) and 1497.5 (-1.8 points).

Market sentiment improved as gainers beat losers by 2:1 but trading volume remained subdued at 1.07 billion shares worth RM1.52 billion against Wednesday's 1.36 billion shares worth RM1.72 billion.

As mentioned earlier, the ability of KLCI to consolidate above the lower Bollinger band coupled with improving technical readings and the breakout above the Down-Trend-Line (DTL) bode well for a technical bounce in the short term, despite wild swings from external front.

Today, with the bullish closing from Dow overnight, the KLCI is expected to stage further rebound to retest the mid Bollinger band (1512) and 1525 points (50% FR from all time high of 1577 and 1474). The next targets are 1537 (38.2% FR) and 1542 (upper Bollinger band). Meanwhile, support levels are situated around 1500, 1480 (lower Bollinger band) and 1474 (3M low).


Daily KLCI: The Breakout Above The Down-Trend-Line (DTL) Could Signal More Upside Amid Improving Technical Readings.
FBM KLCI 04-03-2011


Source: HLeBroking

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